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Tuesday, August 2, 2011

Oil prices august 2 2011 Down below $94 per barrel

Oil prices august 2 2011 Down below $94 per barrel ; Oil fell below $94 per barrel Tuesday as investors continued to worry about weaker economic growth.

Benchmark West Texas Intermediate crude for September delivery was 74 cents lower, at $94.15 per barrel in morning trading on the New York Mercantile Exchange. Earlier, it was as low as $93.75. Brent crude, which is used to price many international oil varieties, lost 43 cents at $116.38 per barrel on the ICE Futures exchange in London.

Crude has dropped for four straight trading days as oil supplies grew in the U.S., and reports on manufacturing pointed to tepid growth in the U.S. and China. PFGBest analyst Phil Flynn said if it weren't for the upcoming hurricane season and a weaker dollar, oil would be much lower.

"We should be trading $10 per barrel below where we are," Flynn said.

Traders are keeping close watch on Tropical Storm Emily, which is expected to reach Haiti within a day. Storms that move into the Gulf of Mexico can disrupt the network of oil production platforms and pipelines in the area and force oil companies to evacuate personnel. That slows down production operations and cuts into U.S. supplies, so prices tend to rise. Current forecasts have Emily staying in the Atlantic, away from the Gulf and on a path for Florida and the Southeast U.S.

Analyst Addison Armstrong noted that about 2.3 percent of oil production and 1 percent of natural gas production in the Gulf of Mexico remains temporarily shut down after Tropical Storm Don swept through the Gulf last week. For the latest updates PRESS CTR + D or visit Stock Market news Today

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